Tanzania Dairy Board
Tanzania Dairy Board
Tanzania Dairy Board (TDB) was established by the Dairy Industry Act Cap. 262 of 2004. The Board was inaugurated in on 11th November 2005 with a mandate to develop, regulate and promote dairy industry in Tanzania. This makes the history of the Board very short indeed but the history of regulation of the Dairy Industry in Tanzania dates far back as shown below.
The dairy industry in Tanzania has gone through various stages of development before and after independence. The history of regulation of the dairy industry in Tanzania starts with the colonial phase, 1921 -1960. During this period, the dairy industry was geared towards meeting the needs of the colonials, Indians and a few natives mainly in the urban areas of Dar es Salaam. The colonial government was the main actor during this formative period of the dairy industry. However, realizing the complexity and the private farming nature of the dairy production, the colonial Government withdrew completely from milk production, processing and marketing and left everything to private operators by 1960. In the subsequent period the Government directed its focus to the regulation of these enterprises in order to ensure both the public health and further development of the dairy industry.
After independence between 1961 and 1965 the operation of dairy sector was led by the “Dairy Industry Ordinance No. 61 of 1961 Cap. 456. This law established Zonal Dairy Boards in areas which had conducive climate to produced sufficient amounts of milk to warrant establishment of a dairy plant in Dar es Salaam/Coast, Arusha/Kilimanjaro and Mara. The dairy industry ordinance was later repealed and replaced by the Dairy Industry Act No. 32 of 1965 Cap 590. This Act established the National Dairy Board to regulate and co-ordinate the development of the dairy industry. The main part of this legislation was directing each milk producer to sell his/her milk only to the nearby dairy factory that is to say the rest of the country milk produced was consumed within locality. This move gave the dairy processing factories a de facto monopoly on the dairy industry in that it decided on which price to pay to the producer and how much to charge for their products.
There was a drastic policy change after the 1967 Arusha Declaration whereby all large scale dairy farms and milk processing factories were nationalised thus bringing the government into direct production and trade in milk and milk products.
In 1975 the government embarked on a programme to boost dairy development whereby efforts were put on increasing milk production. Main concentration was on improving the indigenous cattle through crossbreeding and upgrading programmes with the objectives of increasing the number of improved dairy cattle. Other programmes to improve productivity included disease control and animal nutrition. Alongside these programmes were investments in the establishment of parastatal medium and large scale dairy farms, livestock multiplication units, milk processing plants and milk marketing infrastructures.
These initiatives resulted in the establishment Livestock Development Authority (LIDA) which subsequently formed eight (8) dairy farms under the Dairy Farming Company (DAFCO) and seven (7) milk processing plants under the Tanzania Dairies Limited (TDL) producing reconstituted milk using powdered skimmed milk and butter oil which were supplied by the World Food Programme. Proceeds from sale of the reconstituted milk were used for development of the Dairy Industry. It was then assumed that these two subsidiaries had taken over the functions of the dairy board and therefore the minister responsible for livestock development did not appoint the board since that year. Therefore the board became moribund, that is it continued to exist in law but non functional in practice.
From mid 1980’s the approach for development of the dairy industry shifted from establishment of medium and large-scale farms towards small holder dairy development. This shift was prompted by the under performance of parastatal dairy enterprises attributed to management problems but also realization of role of smallholder dairy in poverty reduction.
The change in strategy towards dairy development coincided with economic reforms which included government withdrawal from engaging in production, marketing and processing and other business related functions and liberalization of markets among others. The shift towards the private sector involvement when the government in partnership with various donors established several Smallholder Dairy Development projects such as Heifer Project International (HPI), Kagera Livestock Development Project (KALIDEP), Tanga Dairy Development Project (TDDP), the Southern Highlands Dairy Development Project (SHDDP) in Iringa and Mbeya regions and Autropeject Association in coast and lake zones. This policy shift was reflected in the National Agriculture Policy of 1983 and later the National Agriculture and Livestock Policy of 1997.
These two policy documents allowed the entrance of the private sector in milk production processing and marketing. With the economic restructuring policies started in the late 1980s, whereby the government withdrew from direct production and marketing, TDL and DAFCO collapsed or some of their operations were privatised and their place was taken over by the private sector. With the expanding private sector involvement there evolved a need to have in place new legislation to govern the industry.
As a result of the reforms, many individuals and agencies joined the industry as milk producers, processors and marketing agents performing various functions such as promotion of improved dairy breed, milk processing and marketing but without coordination or proper primary regulator. From 1998 the Dairy industry stakeholders initiated the process of enactment of a new law by forming a Task Force (TF 98) to prepare a draft proposal. The task force presented its proposal at the 4th National Dairy Development Conference in 2002 at which the Stakeholders formed an Interim Tanzania Dairy Board. Among the tasks of the interim board was to follow up on the enactment of the new law. The new law was enacted in April 2004 as The Dairy Industry Act No. 8, 2004. The Board draws its membership from the Government and stakeholder organizations such as milk producers, milk processors, milk traders, input suppliers and consumers.
The main differentiating features of the Tanzania Dairy Board appointed under the Dairy Industry Act, 2004 are that:
• It is more participatory in that it gives the stakeholders more decision making powers and involves them in supervision of implementation of the decisions made,
• It is more democratic in that each member except the chairperson both in the Annual Council and the Board has one vote,
• It is more autonomous in that it acts on decisions of stakeholders and is answerable to stakeholders,
• It is more stakeholder friendly as it has more members representing the stakeholders who are elected by the stakeholders themselves and
• Gives equal emphasis to development, promotion and regulation and is not just a regulatory organ
The outcome of the participatory process of reforming the dairy sub-sector in Tanzania, which changed the country dairy landscape considerably in the last five to six years can be summed up as:
- · Creation of operational boundaries among actors in the value chain for increased efficiency and cost effectiveness
- · Empowerment of the different stakeholder groups through associations – TAMPRODA and TAMPA
- · Increased participation of all stakeholder in policy formulations and thus better understanding of existing policies and regulation
- · Supportive policy environment for Private sector participation and public-private sector partnership
- · Development of Standards and quality control systems
- · Supportive policy towards investments.
- · Constructive and effective mechanism for participation in regional integration and trading.